What total amount of current assets should be reported by the entity on December 31, 2019? An entity reported the following current assets on December 31, 2019Cash including fund of 300,000 set aside toacquire am equipment, to be disbursed onMarch 31, 20202,000,000Trade and other receivables3,500,000Inventory including 400,000 cost of goods intransit purchased FOB destination. The goods2,800,000are received on January 3, 2020ТOTAL8,300,000The trade and other receivables included the following:Trade accounts (of which 10% is considered1,500,000doubtful in collection)Advances to affiliated entities1,000,000600,000Dividends ReceivableClaims against shipper400,0003,500,000ТОTALWhat amount of total current assets should be reported by the entity on December 31, 2019?

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FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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What total amount of current assets should be reported by the entity on December 31, 2019?

An entity reported the following current assets on December 31, 2019
Cash including fund of 300,000 set aside to
acquire am equipment, to be disbursed on
March 31, 2020
2,000,000
Trade and other receivables
3,500,000
Inventory including 400,000 cost of goods in
transit purchased FOB destination. The goods
2,800,000
are received on January 3, 2020
ТOTAL
8,300,000
The trade and other receivables included the following:
Trade accounts (of which 10% is considered
1,500,000
doubtful in collection)
Advances to affiliated entities
1,000,000
600,000
Dividends Receivable
Claims against shipper
400,000
3,500,000
ТОTAL
What amount of total current assets should be reported by the entity on December 31, 2019?

Expert Solution

Step 1

Assets: Assets are the resources of an organization used in the business operations to generate revenue. They include both current and non-current assets. The assets which are converted into cash within a short term say one year or less are called current assets and those used for long-term i.e. more than one year are called long-term assets.

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